Preparing a Statement of Cash Flows LO1-1 NITSU Manufacturing Corporation is preparing the annual financial statements for its shareholders.
A statement of cash flows must be prepared. The following data on cash flows were developed for the entire year ended December 31, 2020: cash inflow from operating revenues, $270,000; cash expended for operating expenses, $180,000; sale of unissued NITSU shares for cash, $30,000; cash dividends declared and paid to shareholders during the year, $22,000; and payments on long-term borrowings, $80,000. During the year, a tract of land was sold for $15,000 cash (which was the same price that NITSU had paid for the land in 2016), and $38,000 cash was expended for two new machines. The machines were used in the factory. The beginning-of-the-year cash balance was $63,000.
Required:
Prepare a statement of cash flows for 2020. Follow the format illustrated in the chapter.